Application of Proceeds from Condemnation. (a) In the event that the Mort- gaged Property or any part thereof, shall be taken under the power of eminent domain, all proceeds and avails therefrom may be used to finance construction of utility plant secured or to be secured by this Mortgage. Any proceeds not so used shall forthwith be applied by the Mortgagor: first, to the rat- able payment of any indebtedness secured by this Mortgage other than principal of or in- terest on the Notes; second, to the ratable payment of interest which shall have ac- crued on the Notes and be unpaid; third, to the ratable payment of or on account of the unpaid principal of the Notes, to such in- stallments thereof as may be designated by the respective Mortgagee at the time of any such payment; and fourth, the balance shall be paid to whomsoever shall be entitled thereto.
Appears in 5 contracts
Samples: Mortgage Agreement, Mortgage Agreement, Mortgage and Security Agreement
